Tag: Gold

Gold Is Sending A Very Strong Message, Are You Listening?

Posted on by The INO.com Team

Hello MarketClub members and friends of MarketClub everywhere! Today, I have a brief market update on the general market and an in-depth analysis on gold.

2015 has not started off too well for the US equity markets, while the reverse seems to be true for the action in gold (FOREX:XAUUSDO). What's going on? Oil continues to slip, which most economists thought would be good for the economy, but it does not seem to be helping the market. This brings me to my next thought...

Do you know about the "January Barometer"? Since World War II, if the market closes down in January, the average price change was usually flat in the remaining 11 months. So while certain stocks may do very well overall if the market closes down this month, look for a less than stellar year.

As you can see, while stocks have been swooning, gold has actually been on the move to the upside. As I write this, gold is up almost 3% and we are only 6 days into January!

Take a look at the chart and you can see that gold has almost completed an important technical formation known as a "head and shoulders bottom", one of the most reliable formations in your technical arsenal.

A higher close today clearly breaks over the the all important "neckline" resistance level. Once over the "neckline," I can see gold moving based on the head-to-neckline measurement up to the $1,330 to $1,340 level.

Wishing you all the very best in 2015.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Investing During the Era of Peak Gold Discoveries

Posted on by admin

The Gold Report: Brent, you've quoted Goldcorp Inc.'s (G:TSX; GG:NYSE) CEO, Charles Jeannes, saying that we've reached peak economic gold production. What led us to this point?

Brent Cook: That's a big question that really goes back to what was happening in the global exploration sector 20+ years ago. I don't want to get into the peak gold production idea but instead focus on the discovery curve and what's behind the problem we are seeing in the gold sector.

Why aren't we finding as many gold deposits as we used to, or at least as many economic deposits? In 1995 or so, the discovery boom in the gold sector peaked and that success is largely tied to the opening of large areas of earth that were previously off limits to serious exploration. Since then, exploration success and new discoveries have trended down. However, in terms of gold production, it's taken about 20 years for all those discoveries to work their way through the system to come into full production.

So what Charles Jeannes sees is that in 2015 or so, gold production is going to be tapering off as opposed to expanding. That's especially true given the current gold price and cost structure. A lot of these companies aren't making much money, or any money at all. They'll be shutting down loss-making projects over the coming years.

TGR: Are we running out of gold in the world, or did we just not make an investment in a timely manner, say, 20 years ago? Continue reading "Investing During the Era of Peak Gold Discoveries" →

Caution, Caution, Caution

Posted on by The INO.com Team

Here we are at the first trading day of 2015. You may remember one of my posts in December indicating that the markets can be quite dangerous over the holiday time period. Well, that same danger carries over in to the first week of January when many traders are just getting back from vacations and preparing to setup their trading desks for the New Year. Typically, I like to get serious about the market after the first full trading week of January is over and volume once again returns to the market.

At the moment, we're still in a very low volume period indicating that the markets can be extremely volatile on a moment's notice. You only have to look at gold in the last several days to see the extreme swings up and down that market is going through, which proves my point. This extreme kind of market action can happen in any market with little or no notice - so the word for today and next week is caution, caution, caution.

On A Personal Note

I hope everyone had a wonderful time with family and loved ones over the Christmas holidays.

I am very fortunate, thought some would say unfortunate, that right after Christmas I have a birthday. The 26th of December is my birthday, for those of you living in England and Australia, that's Boxing Day. I've gotten to the age when birthday presents really aren't my thing anymore as I pretty much have all the underwear and socks I will ever need. However, this year was different, as I did want something, something very special and close to my heart. Continue reading "Caution, Caution, Caution" →

What's Ahead In 2015?

Posted on by The INO.com Team

Here we are, the first day of 2015, thinking about what's ahead this year. There's no doubt about it, 2014 was a good year for most stock investors and we hope you got your share of the pie.

The big standouts to me in 2014 were the mega drop in oil prices and the fact that gold prices have lost two years in a row. The last time that happened was in 1997 – so what's ahead in 2015?

I think that 2015 will offer some amazing opportunities for smart, knowledgeable investors. The key to trading this year is to go with the flow and don't fight the market. I don't know of any market expert who, in January of last year, forecast a 40% drop in oil prices. I'm not sure I heard anyone predicting that gold prices were going to have back-to-back losses two years in a row.

What does that tell you?

The investors or gurus who hold fixed beliefs and feel compelled to defend their market opinions are doomed. Investors who hold rigid market opinions in 2015 are not going to fair well and enjoy positive returns. That's just my opinion, and I reserve the right to change it at any time.

Here is another timeless piece of advice for 2015: Continue reading "What's Ahead In 2015?" →

Gold Versus Top Currencies! And The Winner Is….

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Long ago, Gold was an exchange medium and one of the very first hard currencies. In this post, I will show you YTD results of the competition between this former currency and the top 7 modern currencies. I selected the US dollar first, and the others are 6 components of US dollar index placed by weight: EUR, JPY, GBP, CAD, SEK and CHF. I bet some of you never even thought about such currency crosses for Gold.

On the above diagram, you’ll see DXY components in different extents. They lost their value against Gold and only the 'king currency' managed to survive and even gain a small profit. So the winner is US dollar and the top loser is Swedish krona, the net difference between them is 20%, impressive! Continue reading "Gold Versus Top Currencies! And The Winner Is…." →